IDEAS home Printed from https://ideas.repec.org/a/aeq/aeqaeq/v61_y2010_is_q5_p89-124.html
   My bibliography  Save this article

Labor Market Reforms, Hysteresis, and Business Cycles in Germany: A SVAR Approach to Explain Unemployment Developments

Author

Listed:
  • Alex Herzog-Stein
  • Camille Logeay

Abstract

Since the 1970s the German economy suffered from a pattern of step-wise rises in unemployment which was only broken during the last expansion in economic activity as the unemployment rate dropped to levels unseen since the 1990s. Against the backdrop of recent major labor market reforms this raises the question about the reasons for these shifts in unemployment over time. Therefore this study performs a time series analysis to examine the different impacts of institutional factors, cyclical shocks and hysteresis on unemployment in West Germany. This is done firstly via a descriptive comparative approach and secondly by estimating an autoregressive model in error-correction form for West Germany. The econometric results provide support for the hypothesis that cyclical shocks to the demand for labor and hysteresis played an important role in shaping labor market outcomes in Germany. Comment by Jürgen Jerger.

Suggested Citation

  • Alex Herzog-Stein & Camille Logeay, 2010. "Labor Market Reforms, Hysteresis, and Business Cycles in Germany: A SVAR Approach to Explain Unemployment Developments," Applied Economics Quarterly (formerly: Konjunkturpolitik), Duncker & Humblot, Berlin, vol. 61(Supplemen), pages 89-124.
    • Handle: RePEc:aeq:aeqaeq:v61_y2010_is_q5_p89-124
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Keywords

    unemployment; vacancies;

    JEL classification:

    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aeq:aeqaeq:v61_y2010_is_q5_p89-124. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Deborah Anne Bowen (email available below). General contact details of provider: http://www.duncker-humblot.de .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.